Philip Green’s fashion empire Arcadia Group on Tuesday said it received applications from legal entities of U.S.-based property group Vornado challenging two of its seven planned Company Voluntary Agreements (CVAs).
Miss Selfridge’s loss is Vans’ gain with the US sports shoe brand set to step into the Oxford Street, London, space vacated by the Arcadia label as part of that group’s CVA-linked store closure programme.
American landlords have lost their battle to recoup losses after Topshop USA’s bankruptcy filing. Arcadia can now move cash from its Topshop US liquidation sales back to the UK, along with frozen bank account funds.
US landlord Vornado has suggested Philip Green and his Arcadia empire may have manipulated the results of a CVA vote by increasing its debt owed to suppliers, potentially undermining landlords’ power to block it.
Arcadia is moving fast following the approval of its CVA and it has said it will cut 170 jobs at its HQ. The company is “proposing to make some structural changes in order to support and deliver the turnaround plan.”
Arcadia may have sweetened the terns of its CVA to win landlord support at a series of votes due on Wednesday afternoon, but one major landlord, mall owner Intu, is set to vote against the plan, a report said on Tuesday.
Philip Green's Arcadia on Friday improved the terms of his restructuring plan for the struggling retailer, which he needs creditors to approve to prevent the group, which employs 18,000, collapsing into administration.